Voices

September 02, 1998

"We expect little impact [from global financial troubles] on U.S. economic growth, corporate profitability and cash flow, suggesting that values have notably improved in recent weeks. Importantly, we do not expect global recession this year or next."

Abby Joseph Cohen, chief strategist, Goldman, Sachs & Co.

"The situation in Russia is serious. Selling begets selling and more selling, which begets panic. Whether it's a bear market really doesn't make a difference; this is a major correction or what we call a change of sentiment. This has happened before and it may happen again. We just have to wait it out and sit through it."

James W. Brinkley, president, Legg Mason Wood Walker Inc.

"We've got a real correction going here. [Tuesday] was a little bit of a balancing act on the part of the market, but the potential for decline in corporate profits and earnings has not yet been reflected. I think we still have a leg down to go."

Douglas Ober, chairman and CEO, Adams Express Co.

"Absent a U.S. and European recession, this market is cheap."

Ed Kerschner, chief investment strategist, PaineWebber

"If the stock market falls 30 percent, which is not out of the question, and the global economic wildfire spreads to Latin America, then we could quite possibly see a recession in 1999."

Sung Won Sohn, chief economist, Norwest Corp.

"Although spirits have lifted, there's still a lot of edginess or tension. We've seen head fakes before, where it appeared as though the market had stabilized or was recovering, and in fact it wasn't, and it was soon to be followed by bad news."

Hugh Johnson, chief strategist, First Albany Corp.

"We saw major carnage in the market Monday. But we wore out the sellers, and now the buyers are coming back."